Network Marketing

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The internet era has quietly made some companies love and hate. Some once unknown small companies because of the Internet fame, won the favor of a large number of customers; some thunderclap big companies are worried, customers in the loss, customers in the reduction, especially loyal customers began to slowly "betray", they do not understand, in the end is what?

It is a rather hasty decision to assign the causes of customer churn to the influence of the internet age. The network environment is a macroscopic condition constraint, when the manager is responsible for the brand customers began to lose, he will not first from the external macro environmental factors to start looking for reasons, he would start from the internal analysis, is not the new entrants to make their product force no longer attractive, is not the customer's taste has changed, Or whether the way to provide the product needs to be adjusted.

Customer selection in traditional business model

Managers are well aware that the biggest threat to the business is the change in the external network environment, which provides customers with a wider range of choices, more convenient information and product access. The significance of the network's transformation to traditional business is here.

In the traditional business model, customer loyalty to a brand is actually limited information, limited choice of loyalty, that loyalty is very narrow. The internet is not strong to exist as an independent media force, the customer carries on the brand choice, relies on is the television, the newspaper, the Radio, the magazine, the outdoors and so on traditional medium, due to the time and the space limit, the customer in a certain region carries on the brand choice, his information collects, the appraisal and the Word-of-mouth influence also limits in this area.

Whether it is involved in a low or involved in a high degree of products, each purchase decision, the customer will always seek the maximum value of single purchase, the customer is rational, this does not doubt. Even in the search for images, feelings and other sentimental value, the process of consideration and decision-making is also rational, because customers in the analysis, driving Mercedes may help enhance the personal image, so that they have a different sense of nobility, his logic confirms his rational pursuit of perceptual value.

The customer has made its optimal choice under the traditional business model, this choice is limited to a certain region, the specific time, the limited medium information and the word of mouth influence rational decision-making. But when the network's media strength becomes powerful, the game rule starts to change, the customer gradually is accustomed to carry on the information collection and the appraisal on the network, but the network is the borderless--completely breaks through the space-time boundary, the group boundary, the world begins to flatten, the customer choice also starts to be many.

The process of change, defection and loss is obvious. The original is in the dwarf to choose a tall, selected in the local occurrence, now local barriers are broken, the choice of amplification to the whole, suddenly, customers found that the original "tall" compared to other brands into a "low". He decided to change, and the change was due to the fact that the internet had given him a more "tall" message at the same cost or less in one place.

Avoiding the "self-deception" approach

For a time, managers become flustered, more and more of their own brand information on the network on the Internet, there is malicious slander, there are unprovoked demonized, there are deliberate attacks by opponents, there is a confrontation and obviously superior to the brand challenger. Things are complicated, managers have to spend some of their time in the forum to "dive", or deliberately take some "blisters" with the target customers to communicate. Or, he also needs to submit an expanded staffing application to the Human resources department, arranging a dedicated network supervisor to monitor and communicate the network information to the target customers.

Change response is necessary, but an idle, hectic response may leave managers with no work to do. Persuading human resources to expand staffing and to improve departmental workflow is not a simple matter, managers must focus on limited human, material and energy, targeted response to the network era of customer churn.

It is necessary for managers to avoid some foolish practices similar to "self-deception". Some managers may have had this experience, they will receive some from the network public relations company's phone, claiming that they have the ability, the resources in the first time to screen and cover up all the negative information on the network, and through the network of public opinion initiative to make the brand become the customer's first choice. This is some pretty tempting marketing rhetoric, but managers don't believe the crap they're blowing.

So far, China does not have a PR company's ability to be so powerful that its energy may affect some of the main sites and pages, but in the face of billions of sites around the world, their "shielding and coverage" can only be drop. Moreover, for the increasingly deviated from the "elite" and the trend of the "grassroots" network culture, the emergence of negative information tends to make enterprises less than the defense, when the manager of the spirit of "fire" portal site, not a negative blog article will come out from which site, and quickly set off a great uproar.

The return of product value innovation

This may never be possible, but managers must work towards that direction. Managers must be committed to providing maximum value to rational customers, the value of products, services, personnel, image value promotion, in terms of money, time, energy, physical strength, opportunity cost as far as possible to reduce, while increasing customer "betrayal" the brand conversion costs-when customers have lost "attempt", Let them feel that the conversion of the program is unusually complex, more financial expenditure, financial and relationship costs higher.

These goals may make some managers feel empty, they are always too hack some tools to operate the ingenious, may just ignore the skills behind the most real and important things. Once the target direction is wrong, the tool is no longer in vain. Managers need to distinguish, regardless of the advent of the Internet, there is a point to the beginning and end are not changed, since the customer is rational, then their every step of decision-making is necessarily the pursuit of value maximization.

If managers want customers not to "betray" themselves, they should provide customers with some truly unique value products, far beyond the same kind of other competitive brands. The value of a product's functional level is what the customer really pays attention to, whether it is service, image or staff feelings, are dependent on the function of the value of the existence, as for the cost, managers may wish to believe that a new frontier research to determine: if the product really has a unique and irreplaceable value, customers will not care about the cost.

Product functional level of the unique value of research and development, innovation and business promotion, is the real strength of the business forward-looking thinking of the business to do. Most enterprises are committed to the most fundamental product value innovation as the fear, it belongs to the future business or even dream business, need to put the existing business hard-earned money thrown in, configure a concept laboratory, high salary to raise a group of people, and then wait for the development of the good news.

Do not have to condemn the Chinese enterprises light research and development, heavy sales, the energy and money bets on the existing mature business sales promotion is actually the real move, there is frustration, but more is to do. Compared with foreign countries with abundant financial resources, the primitive accumulation time of Chinese enterprises is too short, they do not have much investment dream business research and development, and the successful market introduction of new product brand, also lacks the necessary experience accumulation.

To instigate Network marketing

Most brands choose to design loyalty programs. For some frequented customers, they will use discounts, cumulative points, buy gifts, award-winning promotions and other ways to make their brand different, but this is only a low-level loyalty plan way.

Many managers want to seek a more solid form of loyalty, such as the formal, informal membership club activities, customer associations and other forms of decentralized customers to focus on their personal needs and requirements, to provide personalized products and services, or to spend a great effort to provide members with resources that cannot be obtained through other sources, To show privileges that are exclusive to members. This is quite effective, and it does prolong the loyalty of some customers to a brand and makes the brand more intimate and attractive.

In the dynamic network environment, managers to make the brand more attractive, or even let customers feel addicted to, in fact there are many ways to choose. Of course, all the paths have escaped the establishment, maintenance and loyalty upgrades covered by the loyalty program, the loyalty program from extensive promotion to one-way relationship, the actual form and method is rich and diverse.

Since the customer will be because the network provides more and better choice and loss, then from now on, managers should be calm down, good planning brand and web marketing of the website. Managers must first face, is how to make their own sites and brands such as Sister Furong General Plug size site forum space. Information is everywhere to promote visibility, but also in the conduct of customer interception, so that customers always immersed in their own information in the ocean, it is difficult to see threatening opponents information.

However, for most brands and websites, Sister Furong's situation is in essence can be met and not to ask, they can not have sister Furong so conspicuous "virus." Because the information covers the network "virus" spread factor is too few, most managers have to do some "follow the rules" of the way, such as purchase or resource replacement portal site theme layout, banner and floating ads, forum stickers, keyword advertising search registration, search ads.

Although compared with TV newspapers, the cost of emerging network advertising may be lower, but because the network advertising is difficult to monitor, the effect is difficult to predict, for most of the standardized operation of the big brands, the delivery of data is unreliable and quantitative evaluation, directly means that they can not persuade the Finance Department and the audit department to agree with their own ideas. The position of marketing department, Finance Department and audit department is wrong, their thinking logic and perspective of enterprise operation is completely different, the marketing department wants to smoothly through its own delivery plan, must have enough data mining and quantitative analysis, qualitative or unable to monitor the media effect is good, will be the financial controller under the pressure of the desk, Freezing for one months will not be signed.

This cautious financial mechanism makes the network movements of many big brands very conservative, they will not be on some of the unknown emerging network media to launch a high-profile, they would choose some have been proven by other peers in the media. Of course, they occasionally try to get involved in some of the emerging Internet media, but that kind of effort is only ten thousand or twenty thousand.

The fundamental way to retain customers

Under normal circumstances, in order to retain customers as much as possible, managers will adopt a warm strategy, will focus on the company's official website, the single information released as an open communication platform, on the site to open up forums, online video, online chat, friends and other interactive sections, and then encourage customers to speak freely. Managers are playing the edge with the financial department, the official website of the construction and promotion of the company's overall image to promote the name of the application, does not involve media delivery, the financial director in the signature will not hesitate too much, will not rigidly require strict media delivery effect evaluation report.

Using the official website to interact with customers is the industry's recognized most mainstream retention practices. "Official" makes customers feel believable and feels close to the company. When customers are dissatisfied with the brand, if the official web site has room for complaints, they generally do not first consider other sites, forums, communities and blogs, customers always want their opinions to be valued and positive feedback, unless the official website has no room for their complaints and comments, unless their comments posted on the site is ignored. In fact, we have more than once met, a short period of time received by webmaster replies customers will often show a more enthusiastic web site participation, their interaction with the administrator of the frequency is not received replies to customers several times.

On the official website, managers can try many effective communication ways to increase the stickiness of the site. He can encourage the registration of the website by giving back the prizes, so as to get the customer information, and also can launch the network theme and featured activities to attract the customers ' participation. Most of the time, activities and the main paste will always be related to the offline activities, but the manager will be offline activities placed on the site, often deliberately in the picture and text to create some "virus", launched network communication and Word-of-mouth influence.

Ingenious at best is only tactic, in the product innovation ability, in order to retain customers to take the transition route, if the manager because of short-term brilliant mistake will be sublimation for the enterprise long-term reliance on the strategy, for the brand, it will be a subversive disaster. In any case, the product force is the real supporting point of marketing, but also the fundamental value of attracting customers.

The most effective way to retain customers who are about to lose is to make your product value unique and irreplaceable, and to make the customer's conversion cost infinitely large. The persistence of the product value innovation should not only be the slogan and the form, it should become the habit of the manager, into the enterprise's blood and behavior. Time and again moving price promotions, discount concessions, membership points and interactive activities, as well as the pleasing appearance of visual revolution, image promotion, service improvement, etc. to the loss of customer retention effectiveness, are only temporary victory.